Mint Explainer: How CCI proposes to implement a new regime for merger approvals?

livemint.com:

₹2,000 crore will be subject to CCI's merger regulations, regardless of whether they meet the conventional thresholds. The purpose of this public consultation is to ensure a smooth implementation process for the newly enacted regime. Stakeholders have until 25 September to submit their perspectives.

The amended provisions propose to reduce the overall timeline for assessment of combinations from 210 to 150 days. Also, as per the amended law, CCI has to frame a prima facie opinion of the transaction within 30 days of receiving a reference. The amended law also introduces changes in the process of proposing modifications to the transaction.

Competition Act is a modern, sophisticated law. However, the changes in the economy since the Competition Act was passed in 2002, especially the growth of the digital economy warranted a re-look at the provisions. CCI has provided details of how it will regulate mergers and acquisitions based on deal value.

The amended law says that mergers and acquisitions where the value of a transaction exceeds ₹2000 crore and the enterprises being acquired have substantial business operations in India need to be notified to CCI for its approval. The draft combination regulations bring more clarity on how‘substantial business operations’ would be examined.CCI has also sought public comments on operational aspects of the new combination approval regime including the form of notice for the proposed combination, exercise of rights in case of open offer and acquisitions on stock exchanges, procedures for filing a notice and scrutiny of the notice. Also, any party planning to execute an acquisition, merger or amalgamation can seek a pre-filing consultation with the CCI about whether the proposed